Watchdog Warns Australia Pension Funds on Private Asset Reports

Australia’s corporate watchdog has warned the nation’s pension funds to strengthen disclosure around private assets and their valuations as the A$4.3 trillion ($2.8 trillion) industry ramps up its exposure to unlisted investments.

The Australian Securities and Investments Commission on Tuesday released a review of the latest financial reports from 60 funds and a sample of audits. It found inconsistent investment disclosures and urged funds to ensure that valuations provided by external fund managers are reliable.

ASIC also said disclosures must be clear enough for members to understand how their money is invested. The industry, the world’s fourth largest, has about ...